Why do some luxury watches increase in value (and others not at all)?

You’ve probably seen it before: a 1992 Rolex Daytona now selling for four times its original price. A Patek Philippe Nautilus going under the hammer for a record amount. Or an Audemars Piguet Royal Oak whose waiting list is only getting longer.

But on the other hand, there are also plenty of luxury watches that barely retain their value. How does that work? Why do some watches become more valuable and others sink into oblivion?

When you buy a luxury watch, you usually don't just do it to keep track of time. You buy craftsmanship. History. Prestige. And sometimes an investment. But then you have to make the right choice.

In this article we dive into the factors that determine whether your watch increases in value!

1. The harder to get, the better

The first and perhaps most important factor: how rare is the watch?

When a brand releases a limited edition model, demand immediately increases. People want what they can’t have. And when that limited supply ends up in the hands of collectors who don’t sell their watches quickly, the market only gets tighter.

Just look at the Audemars Piguet Royal Oak. When it came out in 1972, it was a revolution: a luxury sports watch made of steel. A bold move at the time. Now it's an icon. 

Note: exclusive does not always mean stable value. Some brands try to be 'artificially' exclusive by releasing limited editions. But if no one really wants it, little happens to the price.

2. Some names always work well

Not all brands are created equal. Rolex, Patek Philippe and Audemars Piguet are almost always safe bets when it comes to value retention. Why?

Strong reputation 

These brands have been known for their quality for decades.

Timeless designs 

A Rolex Submariner from the 60s still looks great.

Demand remains constant 

People want them, whether the economy is good or bad.

Please note: not every Rolex model increases in value. Some were produced in abundance and will never become truly rare.

3. Does the watch have a story?

Some watches only become truly valuable because of their background. For example:

Watches Worn by Celebrities 

A Paul Newman Daytona is not just any Daytona.

Models with an important historical function 

Think of the Omega Speedmaster. The first watch on the moon.

First editions of iconic collections 

The first Patek Philippe Nautilus? Jackpot.

It is these stories that drive collectors crazy and drive up prices. Do you have a watch with a unique story? Then it could be a hidden gem!

4. Original or 'spoiled'?

Don't underestimate this: the condition of a watch largely determines whether it remains valuable.

Some rules are:

Original parts are very important 

Replace a dial or bezel with an aftermarket version and the value can plummet.

No excessive restoration 

A vintage watch that is too refurbished loses its charm (and value).

Maintenance by the right experts 

Don't let just any jeweler service your Rolex. Use a reputable repair service.

Do you have a watch you want? sold? Then make sure you still have all the papers and boxes. That can save you thousands of euros. 

5. Market trends

Watches can also increase in value through… fashion. Yes, really.

Sometimes a certain model suddenly becomes super popular through social media, celebrities or trends. Just look at the rise of green dials or the hype around skeleton watches.

Trends are unpredictable, but if you buy and sell at the right time, it can bring you nice profits.

So…which luxury watches are the best investment?

While there are no guarantees in the watch world, there are a few safe bets when it comes to value retention:

• Rolex Daytona
• Patek Philippe Nautilus
• Audemars Piguet Royal Oak 
• Tudor Black Bay 

But in the end, you should buy what you like. A watch should not only be an investment, but also a pleasure to wear.Would you like some tailor-made advice? Then plan an online appointment and we will help you make the right choice!